Added Back Interest income by ITO

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KAPIL (Querist)
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27 October 2010 Sir,

I m doing a bussiness in Himachal Pardesh of Eelectrical Goods as manufacturrer. I have earned some Interest Income during the year 2007-08 on late payment received on issuing sale bills to party. What i do, Sir. Please confirm that it is a taxable income or not. If not, Please supply me a copy of Judgement of any court for income tax purposes only.

Awaiting ur reply.

CA Navin Jain

CA Navin Jain (Expert)
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27 October 2010 ITS TAXABLE UNDER HEAD PGBP

KAPIL

KAPIL (Querist)
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CA Navin Jain

CA Navin Jain (Expert)
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27 October 2010 YES INTEREST INCOME IS TAXABLE DURING THE ORDINERY COURSE OF BUSINESS

KAPIL

KAPIL (Querist)
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27 October 2010 What is PGBP?

CA Navin Jain

CA Navin Jain (Expert)
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27 October 2010 profit and gain from business or profession

KAPIL

KAPIL (Querist)
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27 October 2010 Sir,
My friends has told me that interest income is purely business income and it is eligible for deduction u/s 80IC. what u suggest about decision of the Supreme Court in the case of CIT VS GOVINDA CHAUDHRY AND SONS REPORTED AT 203 ITR 881 AND DELHI HIGH COURT IN THE CASE OF CIT VS ADVANCE DETERGENTS LTD. REPORTED AT 228 CTR 356 DEALING WITH THE ISSUE OF DEDUCTION U/S 80-IA AND PUNJB & HARYANA HIGH COURT IN THE CASE OF PHATELA COTGIN INDUSTRIES (P) LTD. VS CIT REPORTED AT 303 ITR 411.

Awaiting ur reply.